Schneiderman proposes two pieces legislation to address the state’s vacant building crisis

Hilary Lamishaw, director of community affairs for TRIP, speaks with Troy City Council President Rodney Wiltshire, Attorney General Eric T. Schneiderman, and Troy homeowner Asia White in the background. Schniederman announced two pieces of proposed legislation Wednesday in Troy.
Mike McMahon — The Record

Troy homeowner Asia White speaks with Attorney General Eric T. Schneiderman, who made an announcement regarding his efforts to help struggling homeowners in the Capital Region at the Troy Rehabilitation & Improvement Program’s offices in Troy on Tuesday.
Mike McMahon — The Record

TROY >> State Attorney General Eric Schneiderman visited the Collar City to announce two new pieces of legislation he will introduce to help address the vacant building crisis hurting urban areas around New York.

During a press conference Wednesday, aptly held on the fourth floor of the building where the Troy Rehabilitation and Improvement Program (TRIP) and the city’s Vacant Properties Workgroup call home, Schneiderman announced the legislation, which, if passed, will help families and communities come out on top of a real estate crisis.

The aim of the first piece is to increase the number of land banks available throughout the state from 10 to 20, while that of the second would require banks to take quicker control of “zombie properties” after families vacate them during the foreclosure process.

Following the financial collapse of 2008, Schneiderman said the United States saw a $7.4 trillion loss in equity which soon led to homeowners saving every penny to stay in their homes as opposed to contributing to the consumer market.

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Schneiderman said the Capital District seemed to be hit the hardest in New York state, as he said some local counties saw the highest foreclosure rates throughout the state.

Much of this has led to people just leaving their homes under the financial weight bearing down on them. The vacant properties soon become an eyesore for the community in addition to bringing down its morale.

Hilary Lamishaw, director of community affairs for TRIP, said those living next door to vacant properties will see the value of their homes drop.

However a building becomes vacant, it sometimes ends up in the hands of a municipality and, as a result, can become a financial drain on it due to the dedicated resources necessary to maintain the property.

Having land banks would help the state’s municipalities get rid of some of these vacant properties in a more efficient manner, by setting up a committee whose members would decide how they are acquired and disposed of. While it is unclear how much it would cost to double the number of land banks, Schneiderman said the state has already provided $12.4 million for eight municipal land banks and has the remaining two spots out to bid.

The first bill, according to Schneiderman, will be introduced by Assemblyman William Magnarelli, D-Syracuse. Schneiderman’s office has planed to provide $20 million for the 2-year program, which comes from the 2012 National Mortgage settlement with several of the nation’s largest banks.

Schneiderman also proposed legislation that would force banks foreclosing on a property to take more immediate care of it following the homeowner’s departure.

“It may take months or a year for the banks to get to the property to maintain it,” Schneiderman said. “When they know a home has been vacated, within a few months we want banks to begin maintenance.”

The initiative, which Schneiderman said would meet even the federal standards for foreclosed properties, would also help create a zombie property registry as banks would have a better idea of which homes have already been abandoned by their owners.

Lamishaw said there are a total of 560 vacant properties here in Troy, but said it was hard to determine which of them could be considered a “zombie property” because it is difficult to track down their owners.

Mayor Lou Rosamilia praised Schneiderman for his efforts and highlighted the need to address the issue of zombie properties in the city. After seeing the impact of foreclosures in a community, Rosamilia said he understands it not only brings about economic issues but also public safety concerns as well.

“Zombie properties are an issue that we really need to emphasize,” Rosamilia said. “This is a great step.”

Assemblyman John McDonald, D-Cohoes, also gave credit to Schneiderman for acting like a mayor with his proposed legislation. As the former mayor of Cohoes, McDonald said he understood all too well the problems just a single vacant home in the neighborhood can bring to a community.

“It’s that one house in the neighborhood that ruins it for everybody,” McDonald said, adding it has been the cause of the flight out of urban centers to the suburbs. “It causes such a nightmare for communities to deal with those properties.”

The importance of families needing legal aid when going through the foreclosure process was also emphasized as Schneiderman promoted the accomplishment of his office’s Homeowner Protection Program. TRIP is one of its grantees.

The program, according to Schniederman, has helped 23,760 people statewide over the last 15 months, including 6,660 people who either gained or are awaiting loan modification approvals, with 263 of them in the Capital District.

“We want to keep people in their homes,” Schneiderman said. “It is tremendously important we stand together on this. It’s not just a state problem but a national one.”